TAILIEUCHUNG - Lecture Financial accounting: Tools for business decision making - Chapter App G: Time value of money

Lecture Financial accounting: Tools for business decision making - Chapter App G: Time value of money. This chapter’s objectives are to: Compute interest and future values, compute present values, use a financial calculator to solve time value of money problems. | Time Value of Money Kimmel ● Weygandt ● Kieso Financial Accounting, Eighth Edition G CHAPTER OUTLINE Compute interest and future values. 1 Compute present values. 2 LEARNING OBJECTIVES Use a financial calculator to solve time value of money problems. 3 Payment for the use of money. Difference between amount borrowed or invested (principal) and amount repaid or collected. Elements involved in financing transaction: Principal (p): Amount borrowed or invested. Interest Rate (i): An annual percentage. Time (n): Number of years or portion of a year that the principal is borrowed or invested. LO 1 LEARNING OBJECTIVE Compute interest and future values. 1 NATURE OF INTEREST Interest computed on the principal only. NATURE OF INTEREST Illustration: Assume you borrow $5,000 for 2 years at a simple interest rate of 12% annually. Calculate the annual interest cost. Interest = p x i x n = $5,000 x .12 x 2 = $1,200 2 FULL YEARS ILLUSTRATION G-1 Interest computations Simple Interest LO 1 Computes .

• Kế toán - Kiểm toán
• Time value of money
• Compound interest
• Financial accounting
• Lecture Financial accounting
• Business decision
• Kế toán tài chính
• Future value of Money
• Present value of Money
• Rates of return amortization
• Time lines show timing of cash flows
• Time line for an ordinary annuity
• The Time Value of Money
• Time and Money
• Financial Calculator
• Present Value
• Future Value
• Interest rate
• Inventory model
• Crashable lead time
• Management of the current assets
• Solution algorithm
• Managerial Accounting
• Lecture Managerial Accounting
• Kế toán quản trị
• Managerial finance
• Lecture Managerial finance
• Rates of return
• Intermediate accounting
• Lecture Intermediate accounting
• Single sum problems
• Present value measurement
• Finance management
• Fundamentals of finance management
• Time lines
• The power of compound interest
• Savings problem
• The balloon payment
• Stocking and price reduction decisions
• Non instantaneous deteriorating items
• Complex and time consuming
• Decision making processes
• Lecture Money and Banking
• Bài giảng Tiền tệ và Ngân hàng
• Money and Banking
• Future value concepts
• Financial environment
• Financial management
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Engineering economics
• Lecture Engineering economics
• Time value
• Money application
• Determining operating costs
• Calculating annual costs
• Future amounts
• Present values
• Financial instruments
• Business finance
• Business organisation
• Fundamentals of finance
• Lecture Business finance
• Capital market
• Equity securities
• Issues in financial accounting
• Financial statements
• Future values
• Lecture Engineering economy
• Engineering economy
• Bài giảng Kinh tế kỹ thuật
• Computation of simple interest
• Accumulated interest
• Financial transactions